good day everyone. i'm tamron hall. commanders in crisis, white house press secretary jay carney says the president has "faith in his military and top commander in afghanistan" despite a new inquiry into john allen. in the last hour, we heard from the white house the reaction to the new investigation into general allen and the scandal still surrounding david petraeus. carney attempted to keep the white house out of the fray. >> he has faith in allen. and i would refer you to the pentagon for the process under way with regards to general allen. the president was certainly surprised when he was informed about the situation regarding

general petraeus on thursday. he greatly appreciates general petraeus's remarkable service to his country. but he's not going to make grand decisions about things based on, you know, two situations, two individual cases. he's focused on the missions that the military is tasked with. >> let's look at all that's happened. the pentagon is combing through thousands of pages of documents belonging to john allen. he's denied any wrong doing. a u.s. official tells nbc news that the documents could connect general allen to jill kelley. she's the same woman whose original complaint about harassing e-mails set off the initial investigation. e-mails that multiple law enforcement sources tell nbc was traced back to this woman, paula

broadwell. she's admitted to an affair with dvp dp. last night fbi agents searched paula broadwell's home, the home she shares with her family. she had given them permission to go into the home. they took out boxes and apparently photo es. joining me now is jim frederick, editor at "time" magazine. i heard people joke about this and all the salacious titles. but at the heart of this are some serious and legitimate conce concerns. the president not making any huge pronouncements, but starting with general allen here, the e-mails were exchanged over a two-year span. his confirmation is being held up. that's a big deal. >> it's a huge deal. the story is changing by the hour. every hour there are new allegations as pertains to general allen. 20 to 30,000 pages worth of documents. first 30,000 e-mails. you think that's not the case because it would be

mathematically impossible. but how much time is he spending as the commander of the war in afghanistan e-mailing this woman. that's one of the central issues to sort out is how distracted is this general from what is supposed to be his main job, which is winning the war in afghanistan. all kinds of questions about intersecting jurisdictions and what did anyone know. >> let's assume the general has kept his eye on the prize in afghanistan. if all ducks are in a row, this still delays the process of him moving forward on thursday. he was supposed to appear in that hearing. let's say the general is on the up and up. but the process is being held up. what's supposed to happen on thursday is not. >> at the worse, it's a gigantic distraction. and a new commander taking over, has national security implications because the military establishment is ground to a halt. the new commander of nato, that

process is ground to a halt. it's a distraction that, you know, even obama's reinaugurati reinauguration, everything they are trying to accomplish in the lame duck session has been swamped but this. >> the president or at least his spokesperson having to reiterate he has faith in top commanders. he's having to say that in the wake of scandals. >> these are the two most highly-regarded generals of his generation. one is gone and one is teetering on the brink. where does this end? i think there's a lot of questions. e he says he has great faith in his commanders, but the two bright shining stars who are going to map the strategy for united states military strategy for the next 25 years, one is gone and one is teetering on the brink. >> jim, thank you very much. let me bring in and go back to

the search of paula broadwell's home. joining me is pete williams. the question at least last night when you saw the video come out of the fbi agents going into paula broadwell's home, i first thought the investigation was complete. and this all started in the summer. why last night when they know cameras are staked out there? what would be left in that home from the summer that they needed to retrieve last night? >> i think it's a negative thing. they just wanted to make sure there was anything they overlooked. they have been pretty careful about now saying that the investigation of paula broadwell was completely buttoned up. they were careful to say that was in its final stages. and i think based on the people i have talked to, more than one official here, that that's still an accurate statement. they pretty well concluded there was no cyber offense, no cyber stalking or any offense involving the e-mails that she sent to jill kelley in tampa. what they want to make certain

is the other part of this, which was questions about classified documents. when she was first interviewed in september, she gave them her computer. they found classified documents on that. i think they later concluded they were low-level documents like schedules. she may have had legitimate access to them. they want to make sure there are no other classified documents. it was a consensual search meaning no search warrant. . she gave them the key to her house and said have at it. >> back to the question. this investigation started in the summer. and we're supposed to belief in november they are going back in so search for potentially-classified documents. where was the urgency, if this was a glimmer of a possibility, why wouldn't they have gone back into their home before yesterday, if they are looking for potentially-classified documents or any remnants of something that could be classified? >> i think the best answer to

that is that now that this case is so high profile with the world watching, they just want to make sure they are not missing anything. that's the best explanation i can give for this. there is some head scratching here. it's a decision made by the prosecutors down in tampa who have always been handling the case. they wanted to make sure they didn't miss anything. i think that's the best way of putting it. >> i want to play what leon panetta said last night. he had reporters around him asking about the information he's been privy to. let's play it, please. basically, i'm sorry, and i apologize, we don't have that. he was asked if he has answers to critical information. he said i'm reading the papers

like you are to determine just what the committee finds out. that you have leon panetta saying i'm reading the papers just like everyone else. what's your reaction to that information? >> he's talking about in terms of general petraeus. obviously, the defense secretary is aware of what the findings were in terms of general allen. because my understanding is that the justice department notified the council's office of what they called a potential problem with the allen nomination knowing there was a confirmation this week. and the defense department then took the steps to -- made it public last night and early this morning. so obviously he knows about this part of it. i assume he's talking about the petraeus part and the decision not to inform congress. and i think he also said in that interview that he believes that congressional committees should be kept fully informed. he's giving his own opinion.

as a former cia director. if they found out the director was having an affair, the committee should have been informed. but the view is there's a narrow rule about when you notify congressional committees of investigations and they felt this didn't fit. >> thank you very much. great pleasure having you on with the latest information. let me bring in msnbc analyst general barry mccaffery. thank you for your time. let me get your first reaction. yesterday we were still scratching our heads over general petraeus, how could this happen. and you wake up this morning and now general allen a part of an investigation. what's your reaction to this one-two punch? >> well, you know, general petraeus i have known him since he was 25. he's probably the most brilliant commander we have produced since world war ii. so it's a damaging blow to national security to lose him in this position. he had to resign, risk-taking

behavior is probably unacceptable by anybody. >> when you say risk-taking, is it the possibly exposure of his e-mails? you're not talking about his personal life right? >> well, the cia director gets a lifestyle polygraph. he has a security detachment 24 hours a day. he's under intense scrutiny. so that's why general petraeus said he had to resign. it wasn't acceptable. so off he goes. now the thing with general allen beats me. 30,000 of pages of material, most academics don't produce that much volume during their career. so that one probably need to reserve judgment until the facts come out and they get to the bottom of it. >> we can't stress that in both of these situations with paula broadwell, you have the fbi going into her home as pete

reported. making sure there's nothing there in her home that could be associated or linked to classified information. but our first read team asks about confidence in the institutions. when folks were asking, do they have confidence in, 74% say the military. 42% say the presidency. the supreme court, 33%. we know what they think of congress. that's around 17%, i believe, in some of the polling. but the bottom line, how concern rd you that people will look at this and say what's going on with our generals and see it beyond an issue involving two individuals and something larger? >> tamron, i wouldn't be at all concerned about it. we get 56,000 killed and wounded in action fighting in iraq and afghanistan. there's 2.4 million people in the department of defense. so i think these are shocking incidents and people gratefully are unsettled. it's a personal tragedy for general petraeus and his family,

which makes me sad. but there's a bit of me that says, look, we just went through a presidential election and neither candidate said one word about $7 billion a month in afghanistan and 300 or more killed or wounded a month. sometimes i wonder about america's priorities and what we think is important. >> absolutely. you have some people who say this is a distraction from the fiscal cliff debate and a lot of other things. do you believe given what we know now and the answers that must be presented, are there legitimate questions regarding if there was e-mails or classified information? the volume alone that's alleged with general allen, are there legitimate questions that can placed without asking if our priorities are in line? you have to hold people accountable in the armed forces.

that's our rule 100% of the time. but again, let me go back to the basics. petraeus is one of the the most talented people we have produced in the country's history. he's been at war for ten years. we needed him as a cia director. i'm sad for him and his family and the country. we have lost him in this manner. general allen, i don't understand that at all. i'm going to wait and see what the facts are, but very strange. >> general, thank you so much for your time. greatly appreciated. we are awaiting an update from the pentagon briefing there. perhaps more information. when that happens in about two or three minutes. tough love is what some are calling it. bobby jindal has some harsh warnings for his own party. he says the gop should "stop being the stupid party and put an end to offensive, bizarre

comments." you political panel will weigh in. plus tens of thousands of people sign a petition asking texas to secede. what are my mother's neighbors thinking? what is rick perry saying about this after he suggested -- remember the comments about texas and the secession? and join our conversation on twitter. find ut@on twitter. melons!!! oh yeah!! well that was uncalled for. folks who save hundreds of dollars switching to geico sure are happy. how happy, ronny? happier than gallagher at a farmers' market. get happy. get geico. chances are, you're not made of money, so don't overpay for motorcycle insurance.

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congressman paul ryan is back on capitol hill and talking for the first time about losing his bid for vice presidency.

"losing never feels good." >> we were surprised at the outcome. e we knew this was going to be a close race. we thought we had a good chance of winning. it just wasn't enough at the end of the day. i respect the process is done and i congratulate the president on the race. we now have divided government like we did before. the divided government didn't work. we're going to have to make this divided government work. >> and there are new signs that the word compromise may not be such a dirty word in washington. rand paul says he's ready to work with democrats on immigration reform. and a big concession when it comes to taxes. kent conrad says democrats are throwing around mitt romney's idea to raise taxes on the rich by capping deductions. the chairman of the house republican conference says the willingness to all of a sudden work together boils down to timing. according to congressman deb

hesterly, compromise works best after an election. ladies, thank you for joining me. you heard the comment there that bipartisanship works best after elections. i don't know if that's full proof because you have paul ryan saying that the american people voted for a divided government. seeing power in the house and a democrat in the white house. >> we have to make this work now and a few years ago, you would have heard them saying, no, we can't compromise. we're going to have to stick to our guns. i think this was a real shellacking for the republicans. now you're hearing all of 2016 people walking it back. all of the tea party types saying not all of them, but some of them who want to run for president saying i think we need to scale this back. we can't dumb it down. e we can't be assertive with the american people. they don't want to hear all this. so it's not just elections.

it's elections that you have lost big time. >> to your point, tea party favorite rand paul making some concessions or saying he's willing to on immigration. even reaching out to minorities to come into the fold of the party. let me read when he had to say. "i want to show what conservatives would or can accept if we assimilate those are here however, they got here. don't make it an easy path, but if they are willing to pay taxes, we need to normalize those who are here." that's a quote from politico. what do we a make of senator rand paul? does she have enough influence when you counter mitch mcconnell and others? does he have enough influence to bring in others in the party who agree? >> yes. i definitely think he does. he's considered a player. he brings to the table a very, very big demographic, which is

his father's list. and that's a pretty powerful thing. and what you're going to have to watch for here is the mitch mcconnells of the world, he's somebody who is going to want to may play a little bit on immigration. he faces a primary challenge. so what you're going to see is some of these guys who maybe want to soften on immigration, getting some cover from some of the other guys who will get out there in front to try to protect them so they can win their next electio elections. >> you wrote about rank and file immigration reform yesterday. it caught my eye. it is interesting from the leaders of the party who are on the radio and television meaning like a sean hannity to actual elected officials within the gop who seem they want to speed up the process in hopes of two years from now having latino voters come to their side if immigration is what's holding them back.

>> you have to look at the people who have come forward in the last week or so have been people like lindsey graham, john mccain, rand paul now, and we haven't heard much from the rank and file in the house. and when you have a group of people that are safely ensconced in gerrymandered districts, there's not much motivation to come out in favor in something like immigration reform. so the senate might be talking about it, but people that matter like lamar smith who was the chair of the judiciary committee, hasn't made a statement. he's bringing back the word amnesty real quick. >> words that matter, you have bobby jindal, the governor of louisiana, i feel like we should get a plug every time we say politico, but he says governor jindal says we must not be the party that protects the rich so they get to teep their toys.

we also had enough of this dumb-down conservatism. we need to thrust the intelligence of the american people and we need to stop insulting the intelligence of voters. so i mean he didn't say amnesty but we saw the heated rhetoric to insight fear and get people fired up and ready to be against any kind of program for the 12 to 14 million people in this country right now who obviously will not all be sent back to their home countries. >> i think that's right. they have painted themselves in sb into a corner in this respect. the republican base is not in favor of a pathway to citizenship. when people talk about comprehensive immigration reform, that's what they are talking about. now it's up to republicans across the country really to start changing their tune. the question is how fast can they do that? will it be a time to make a difference for the next

election? >> and will they try to insert the president? it's high on his agenda as well. but lois, i want to play another clip from congressman paul ryan and his first public reaction on camera to the loss for he and governor romney. let me play it. >> mitt didn't pick me for wisconsin or a certain state. e he picked me for issues, for taking on the debt crisis. we had hoped to win wisconsin. he fought very hard for wisconsin. we cut president obama's lead in half, but nevertheless, it wasn't enough. what it became clear to us as things went on, when virginia and ohio weren't coming together, it looked to me some time early in the evening that it just wasn't going to happen. >> that's his reflection. but moving ahead, speaker boehner was asked whether paul ryan would be the leader of the party. he referred to him as the wonky

guy. what are we to make of paul ryan? >> he is the wonky guy. that was a dismissive comment that the speaker made. what he was trying to say is that he's coming back here, the same guy, as when he left. he's going to be a voice on certain issues, but he's not going to be a leader in the party. >> thank you very much. a pleasure having both of you on today. thank you. coming up, john maca fee, he's wanted for questioning in the murder of his neighbor. details ahead. and just moments ago, president obama finished meeting with labor leaders at the white house. how much leeway will the left give the president when it comes to medicare and social security? that's a question posed by our first read team. we'll check in with them.

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what about updated equipment? they can help, but recent research shows... ... nothing transforms schools like investing in advanced teacher education. let's build a strong foundation. let's invest in our teachers so they can inspire our students. let's solve this. welcome back. jesse jackson jr. has checked out of the mayo clinic. he says he suffers from bipolar disorder. he had been hospitalized since june. last week he easily won reelection in his chicago district even though he did not campaign and has not appeared publicly in months. he's being investigated for alleged misuse of campaign funds. still ahead, i will talk with roger simon who says general

petraeus should not have resigned as cia director over the affair. he says he should resign over believing that gmail is secure. do you think it will reflect poorly on the military? that's our gut check question. you'll find pictures and this is sharon rose campbell, the biggest yankee fan in the world. she keeps everything going around this place. we use this board to compare car insurance rates side by side so you get the same coverage, often for less. that's one smart board. what else does it do, reverse gravity? [ laughs ] [ laughs ] [ whooshing ] tell me about it. why am i not going anywhere? you don't believe hard enough. a smarter way to shop around.

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because if he were anymore dim witted, you would have had to water him. even reading it makes me afraid because i can't quite it as you could because these are your words, but the bottom line is when you're tough with general petraeus, not because of the affair, which seems to be a part of our culture both in the big city, but it was something deep r for you. >> all we have been told month after month is how brilliant this guy is. four star general, west point grad, prince upon ph.d. he becomes america's spy master. the head of the cia and he conduct this is affair through a public gmail account because he thinks that's secret and untraceable. and his pair mother of

broadwell, she sends threatening messages to another woman also through her gmail account that she shares with her husband. as i said, these people are about as smart as a bag of hammers, yet we're told how brilliant they are. they may not be the worst people ever to engage in impropriorities, but i think they are among the dumbest to have ever done it. >> let me ask you here. i'm no psychologist, but the reality is you can be brilliant and haphard in other parts of your lives. they were flawed. without the story lines, we'd have no big tragedies. let's face it. >> they grow up in a culture in

their believe in their own vulnerability. general petraeus has been building his public image for years. careful outreach to people above him, a constant e-mails to reporters. you have seen his accolades on tv in the last 48 hours and this guy made the untragic mistake, it's only tragic if you don't deserve it. >> are you being too hard on him in saying all the things you name are true about this general, true about general allen, are you being too hard in the assessment of referring to them in the language that you use, quite honestly, as not being bright? >> especially not general allen. i will tell you why. general allen is accused, of sending 30,000 pages of inappropriate e-mails to this woman in tampa, florida. if i describe every

inappropriate act in my life, i don't think it would fill 20,000 to 30,000 pages. he's doing this from afghanistan while he's running or helping to run a war. to state the obvious, leadership is very important in the military. if you're a trooper going on patrol in afghanistan today, you've got to believe that your leaders, your generals, your commanders have their eye on the ball. that they are paying attention and they are not frittering away their time sending inappropriate e-mails to women in tampa, florida. that's crazy, that's irresponsible. that lets down our troops and that causes improper disrespect for the military as an institution. >> we appreciate your time. e we know your article has a lot of people talking. they will be discuss iing it. thank you very much. in the past hour, president obama finished meeting with labor and progressive leaders at the white house as part of an

escalating effort to avert the fiscal cliff. >> it was a very, very positive meeting. the president, like we are, are committed to preserving the tax breaks for the middle class and making sure that rich people pay their fair share. >> among the leaders at the meeting, the head of the aflcio and the national education association. later this week, the president will host business leaders from both parties. in the meantime, briefing at the white house, chuck todd asked if the scandal was distracting from efforts to deal with the fiscal cliff. >> i'm not going to make a judgment on that. i think the issues that confront us are important enough and consuming enough with regards to the so-called fiscal cliff and the budget that he expects that those who are engaged in conversations about it and negotiations about it will be as

focused as he is. >> amid-all of that in the past half hour, the house and senate were gavelled back to order following a seven-week hiatus. kelly o'donnell joins us. i understand mitch mcconnell kind of putting some strong words out there on the floor already. >> he and harry reid made their opening remarks to the senate. both talked about the election and tried to set the playing field. and we certainly heard from mitch mcconnell who congratulated the president and vice president on their reelection and said they may find a willing partner in these fiscal negotiations going forward. but he also set the terms and mcconnell was sort of tough in the way he laid things out encouraging the president to take on a leadership role. >> the time for the president to lead is now. and that means offering a concrete plan that takes into account the fact that half the congress opposes tax hikes.

not because we are selfish, not because we're stubborn, but we know it is the wrong thing to do. we know it will hurt the economy and we know it will destroy jobs. >> so the most bipartisanship we are seeing in the early hours of congress being back is about the fact both parties agree that something must be done, that they must work together and that's what voters were saying with their ballots last week. the hard part is how you get there. as you know, hill leaders will be at the white house on friday. conversations have been going on behind the scenes. sort of on an ongoing basis. the real work will become hammered out in december to decide it will be a short-term kind of solution or whether something longer, more enduring can be forged. lots of questions. a spirit of working together, but they are far apart in their basic outline of how they should

be tackled to begin with. >> let me bring in congresswoman gwen moore of wisconsin. thank you so much for your time. >> thank you for having me. >> you heard kelly there. so close, but yet so far. what are your thoughts regarding at least the beginning stages of this conversation to deal with this so-called fiscal cliff? >> well, i can tell you, tamron, just reading and listening to all the players, it sounds very much like the republicans are bringing to the table the same deal and rhetoric they had during the campaign. they want to change social security and medicare and medicaid. things that really are protected from the so-called sequester. i would hope that the president and the senate dems who are in the majority would not fall for the panic and hysteria of the

so-called fiscal cliff and negotiate away these safety net programs for seniors and for the in firm. when you look at it, the biggest ticket items are, in fact, the bush era tax cuts and the payroll tax. and i could promise you that if jan 2nd comes along and they have not figured these things out, this will not -- the world there not end. >> so let me ask you, congresswoman. republicans say to some degree they are willing to negotiate on taxes. is there no negotiation regarding entitlement programs. we know this is a part of the discussion. we know with the grand bargain once before the conversation of the eligibility age for social security was on the table. >> ity it's entirely possible to reform medicare, for example.

we have seen it done already through the affordable care act. it was extended by ten years. raising the eligibility age is very controversial. when you think about some snar that's going to be rolled into the senate in a wheelchair, that's one thing. but if you're fixing my roof, i don't think you're going to be able to work until you're 70 years old. >> so that's off the table as far as you're concerned? >> i do think that there are other ways to do it. no one continues to talk about this magical cap on medicare collections. it's $106,800. i think we ought to start there. i do think the republicans need to remove some of their opposition to fully implementing the affordable care act because we have already seen e great opportunities to reduce costs there. just let me say this. when we look at the fiscal cliff

drama, i think that democrats are strategically in a very good position as long as we don't panic and pander and give in to the bullying we have seen on the republican side. those poll results, exit poll results after the election showed that americans were fully willing to see those folk who is make over $250,000 a year pay. that's going to bring $83 billion in one year. >> absolutely. >> that's no small change. >> when you refer to with bullying and pandering by those on the other side of the aisle, i have to bring you back to the obvious question. where's the compromise, particularly with entitlement programs? is there compromise there. >> we have already enacted a trillion dollars in cuts. the president has opposed making more cuts. but i think we have seen through

our experience in europe that austerity can send us into a deep recession. if there's any hysteria that we ought to be concerned about, that is taking the payroll tax away right away from low income and middle class people. taking away the bush era tax cuts. then cutting more from them. this is what we need to be concerned about with regard to having a stable economy. so we need to reduce the debt responsibly. >> congresswoman, we'll have you back on. i cannot wait for this conversation to progress and get more of your thoughts as it moves forward. up next, software creator john mcafee in hiding. he's wanted for questioning in the murder of a neighbor. details on our stories around the news nation. first a lot going on. here's some things we thought you should know.

the lone star state for a reason. but rick perry opposes. his office shares their frustration with the federal government but does not want to go that far. texas was the world's 14th largest economy. the illinois ousted governor lasted himself a new gig in the slammer. he's gone from dish duty to librarian. the illinois democrat is serving that 14-year sentence for trying to sell the president's old senate seat. he's now going for an appeal. those are a couple things we thought you should know. hi, i'm phil mickelson.

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it's super delicious! software company mcafee says he's innocent in the death of his neighbor. that story tops our stories around the nation. authorities called john mcafee a person of interest but not a suspect in the murder of his neighbor. he sold his stake in the company years ago and told "the new york times" he lost nearly all of his $100 million fortune in the u.s. financial crisis. u.s. health inspectors found bugs and a live bird and other unsterilized conditions at ameridose, that's the facility tied to the pharmacy linked to the deadly meningitis outbreak. it has the same owners as the lab that distributed contain

nated steroids. and four-time cup racing champion jeff gordon is being fined $100,000 and getting docked 25 chase points by nascar for wrecking clinton bowyer in phoenix. they went at it in the huge brawl. both crew chiefs were also fined. and gas rationing in new jersey has come to an end. the rationing started after hurricane sandy slammed into the state affecting supply lines and knock out power to so many gas stations. chris christie says there's now plenty of gas to go around. rationing continues in new york city and on long island. up next, do you think the controversy that led to the resignation of david petraeus and this new investigation involving general john allen, will it hurt the military as an institution? that's our gut check. [ male announcer ] where do you turn for legal matters?

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you can join the news nation on twitter. find us @newsnation. time for the gut check. white house weighed in within the last hour saying the president appreciates the service of both general david petraeus and general john allen. the press secretary says the president was surprised at the situation involving petraeus but would not say much about allen because defense officials are still investigating. our first team questions how the fallout could affect perceptions of our military. we have become a society that has lost faith in ilts institutions. is the military next to go? this scandal could do what the iraq did not, erode trust in the military at least with the leadership. that's a quote from our first read team. what does your gut tell you?

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some people put everything intotheir name on the door, and their heart into their community. small business saturday is a day to show our support.

a day to shop at stores owned by our friends and neighbors. and do our part for the businesses that do so much for us. on november 24th, let's get out and shop small. it's tuesday in "the cycle." all the action is down in washington this afternoon. something big is happening there as we speak. something that hasn't happened in nearly two months. okay, i might be building this up too much. >> no longer adequate to describe the spy scandal. we need to invent a new word. shirtless photos, crazy e-mails, as the sands through the hour glass, these are the days of our lives. >> i'm crystal ball. it's the election that changed nothing and changed everything. today on the show, the issue is taxes and we've got 3,500 reasons for you to tune